Bitcoin Price Surge on Erroneous News
Bitcoin’s price briefly rose more than 5% to nearly $30,000 early Monday after an erroneous report that investment firm giant BlackRock’s bitcoin spot exchange-traded fund (ETF) had received approval from the U.S. Securities and Exchange Commission (SEC).
Erroneous Report and Market Response
A news outlet reported and later retracted a social media post about SEC approving Blackrock’s spot Bitcoin ETF. While Bitcoin pared back some of the earlier gains, it was still up firmly after the clarification. The now retracted story published by Cointelegraph on social media platform X, was denied by Blackrock to other news outlets.
Potential Impact of Spot Bitcoin ETF Approval
The potential approval of a spot bitcoin ETF has been watched closely by crypto market participants for years, as it is seen as a key stepping stone for mainstream financial acceptance and could enable more activity in the market from institutional investors. A number of futures-based bitcoin ETFs already exist in the U.S.
Investor Sentiment and Future Outlook
In light of the bitcoin price spike after the erroneous report Monday, some investors now believe that the eventual approval of a spot bitcoin ETF in the U.S. isn’t entirely priced into the bitcoin market. Altana Digital Currency Fund Chief Investment Officer (CIO) Alistair Milne posted on X Monday stating, “We can safely conclude the following … Bitcoin ETFs were not and are not priced in.”
Predictions and Market Analysis
According to Bloomberg analysts, there is a 90% chance that a spot bitcoin ETF gets approved by January.
